Depending on the severity of your bad credit, and how long since you've had bad credit, you may still qualify for a mortgage loan. Before shopping for a bad credit loan, and certainly before shopping for a home, it's a good idea to understand how mortgage lenders approve home loans.
You're Done with Bad Credit: Second Chances are Available!
Don't despair just because you have made some late payments, or even missed a payment on a bill here and there. Mortgage lenders do make bad credit mortgage loans, but knowing in advance what they look for can help you decide when and how to shop for a bad credit mortgage.
Getting a Bad Credit Mortgage: What Happened Then Impacts What Happens Now
Reviewing your credit report can help track your credit history. Typically, a credit report shows how much you owe now, how much you've owed in the past, and how you pay each debt. The information compiled on your credit report is used in calculating your credit score. Consumers can order credit reports once a year at no cost. Credit scores are also available for fee. It's important to check your credit report and ensure that there are no errors. You can also address any negative information contained in your report. If you have filed bankruptcy, had a car repossessed, or have had a mortgage foreclosure, these items can stay on your credit report for seven to ten years. Typically, mortgage lenders can work with you if a couple of years have passed since the event, but you may have to come up with a larger down payment or pay higher interest rates. Mortgage lenders can help you find a bad credit mortgage appropriate to your needs.
Bad Credit Mortgage Loans: Finding a Second Chance
By Karen Lawson Mortgage Credit Problems Columnist
About the AuthorKaren Lawson is a freelance writer with more than 15 years of experience in mortgage banking. She holds BA and MA degrees in English from the University of Nevada, Reno.
Friday, May 9, 2008
Bad Credit Mortgage Loans: Finding a Second Chance.
For Learn About Mortgage Loans: Information You Need Before Signing
It's important to ask certain questions of mortgage lenders before accepting a home loan. If you were shopping for a car and the dealer offered you a car that was concealed from view, would you buy it? "Kicking the tires" of prospective mortgage loans is even more important and can help avoid unwelcome surprises.
Mortgage Loans 101: Considering More than Payment Amounts
People often focus on getting mortgage approval, especially if they've made an offer on a home and have limited time to shop. Under these circumstances, it's tempting to say "yes" to the first mortgage option offered. This can be disastrous if "yes" is solely based on the initial payment amount.แสดง
ส่วนIdeally, it's best to shop for a mortgage before looking at homes, especially for a bad credit loan. This allows time for considering several mortgage options without pressure. Here's what you'll need to know before accepting a mortgage loan offer.
How long will the initial payment amount last?
If payments will change, how much can they increase, and how often?
What is the APR for this loan? (APR stands for annual percentage rate, and it refers to the cost of financing including interest and lender charges expressed as an annual percentage of the original mortgage amount.)
How much will I have to pay for taxes and insurance?
How much is my mortgage amount, and can it increase? Borrowers may focus on low initial payments without realizing that unpaid amounts can be added to the original mortgage amount.
It's also a good idea to know your credit scores and do some research on interest rates available to those with bad credit. Knowing what to expect when you contact mortgage lenders can help you get a better deal.
Learn About Mortgage Loans: Information You Need Before
Signing
By Karen LawsonMortgage Credit Problems Columnist
About the AuthorKaren Lawson is a freelance writer with extensive experience in mortgage banking. She holds BA and MA degrees in English from the University of Nevada, Reno.
